Carter corporation's sales are expected to increase from $5 million in 2012 to $6 million in 2013, or by 20%. its assets totaled $3 million at the end of 2012. carter is at full capacity, so its assets must grow in proportion to projected sales. at the end of 2012, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. the after-tax profit margin is forecasted to be 4%.

assume that the company pays no dividends.
under these assumptions, what would be the additional funds needed for the coming year? write out your answer completely. for example, 5 million should be entered as 5,000,000. round your answer to the nearest cent.
$

why is this afn different from the one when the company pays dividends?

under this scenario the company would have a higher level of retained earnings, which would reduce the amount of additional funds needed.
under this scenario the company would have a higher level of retained earnings, which would reduce the amount of assets needed.
under this scenario the company would have a higher level of spontaneous liabilities, which would reduce the amount of additional funds needed.
under this scenario the company would have a lower level of retained earnings, which would increase the amount of additional funds needed.
under this scenario the company would have a lower level of retained earnings, which would decrease the amount of additional funds needed.